S.P. Apparels Limited Grants Loan Facility of Up To GBP 40,00,000 to Wholly Owned UK Subsidiary
S.P. Apparels Limited has formalized a loan agreement with its subsidiary, S.P. Apparels (UK) (P) Limited, providing the entity with a financing facility intended exclusively for its ongoing business and operations. The transaction underscores the relationship between the parent company and its wholly owned subsidiary (WOS).The Loan Agreement establishes S.P. Apparels Limited as the Lender and S.P. Apparels (UK) (P) Limited as the Borrower. Given that S.P. Apparels Limited holds 100% of the shares in the UK entity, the transaction falls within the category of related party transactions. The company has stated that this arrangement is conducted at arm's length.
The terms outlined in the agreement cover a loan facility sized up to a maximum limit of GBP 40,00,000. Execution of the Loan Agreement took place on June 11, 2026.
Key details regarding the financing arrangement include:
| Particular | Details |
|---|---|
| Lender | S.P. Apparels Limited |
| Borrower | S.P. Apparels (UK) (P) Limited |
| Nature of Loan | Unsecured loan |
| Total Loan Amount | Not exceeding GBP 40,00,000 |
| Date of Execution | June 11, 2026 |
| Security Provided | None (Unsecured) |
Regarding the commercial terms, the agreement stipulates that the loan tenure is either upon demand or within three years, whichever comes earlier. The interest rate on the Facility Amount has been agreed at 9% per annum, payable with annual rests.
The company confirmed that while the Borrower is a wholly owned subsidiary of S.P. Apparels Limited, the promoters and promoter group do not hold any other interest in the transaction beyond their ownership stake.
SPAL Stock Price Movement
S. P. Apparels Limited shares today shed 0.06%, settling at ₹794.65 after market close. The equity saw 8,000 shares traded during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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